Emlak Konut Gayrimenkul Yatirim Ortakligi AS led declines
on the Istanbul Stock Exchange National Reits Index, dropping
3.5 percent to 3.01 liras at the close in Istanbul, its biggest
loss since May. The index dropped 2.1 percent, the only of 21
Turkey industry gauges tracked by Bloomberg to fall on the day.
The Istanbul Stock Exchange National 100 added 1.8 percent to
79,642.06, a record high.

The new legislation raises taxes on sales of homes with
appraisal values of less than 1,000 liras ($560) per square
meter to 8 percent from 1 percent and for homes appraised at
more than that to 18 percent. That replaces a size-based tax in
which homes larger than 150 square meters were taxed at 18
percent while smaller homes were taxed at 1 percent. The taxes
apply to construction permits issued from this year.

“Overall this is bad news for the sector,” Selim Cakir,
an analyst at Turk Ekonomi Bankasi AS in Istanbul, said in an e-mailed report today. “New projects will be impacted
negatively.”